31 May 2017
Tritax Group, on behalf of the Tritax Property Income Fund, has completed on three new acquisitions for a combined price of £46 million, achieved through a combination of equity commitments and existing debt facility.
In line with the Fund’s investment strategy the multi-let retail warehouse park and two distribution centres acquired are located outside Central London concentrating on an income focused approach.
These three acquisitions, alongside a like-for-like increase in valuation in the portfolio, took the Fund valuation to £169 million, as at 31 May 2017. The portfolio of fourteen assets has a blended net initial yield of 6.08% and a WAULT of 11.8 years, ensuring the Fund is on target to deliver its objective of providing investors with regular and stable income distribution of c.5.5% p.a., as well as longer term capital growth.
The Fund drew the new £35 million debt facility in May, alongside equity, to complete these acquisitions. This debt took the TPIF Master Fund portfolio gearing to 17.9% loan to GAV which will enhance the portfolio income return over the coming quarters.
The two of the three acquisitions were secured off market and include:
Alban Retail Park, Bedford (second retail park)
The Fund completed the purchase of a south-east multi-let retail warehouse park in Bedford for £14.4 million. This well-located 66,000 sq ft scheme with wide bulky goods consent, comprises six retail units let to strong covenants, with a weighted average lease length of 8.0 years to breaks.
Eddie Stobart, Fradley Distribution Park, Litchfield
The Fund acquired a unit at Fradley Distribution Park in Lichfield for £14.3 million let to Eddie Stobart Ltd (“ESL”), for a further 15 years. This 143,000 sq ft high specification, cross docked warehouse, suitable for e-commerce distribution, is strategically located in the West Midlands, just north of Litchfield, close to the logistics ‘golden triangle’. Surrounding occupiers include Tesco, Screwfix, Yodel and Great Bear.
Unit DC1, Purchas Road, Didcot
The Fund completed the purchase of this 166,000 sq ft centre in Didcot for £17.25 million, reflecting an attractive net initial yield of 6.3%.
Developed in 2005 this modern, well specified 166,583 sq ft distribution centre has been occupied by the UK’s largest independent bathroom retailer BetterBathrooms since 2009, and has an unexpired term of 9.5 years.
Tim Legge, Tritax Fund Manager, commented:
“These three acquisitions further demonstrate our team’s ability to source good-quality, off market stock, in line with TPIF’s income focused strategy and proves our ability to execute in a strong market”.
For further information, please contact:
Tritax Marketing Department
Call: 0207 290 1616
The Tritax Group
The Tritax Group started in 1995 where it focused on originating, syndicating and managing commercial property investments for private equity capital. The Tritax Group started by offering property investments structured to make use of available tax reliefs (such as Enterprise Zones) so as to enhance investors’ returns.
The Group has acquired and developed commercial property assets with an acquisition value of over £3.3 billion on behalf of property unit trusts, limited partnerships and syndicates, involving more than 121 separate investment vehicles and including Big Box assets, industrial properties, office, retail and hotels. As at 31 May 2017. the Tritax Group had total assets under management with an acquisition value of approximately £1.83 billion, across more than 14 investment vehicles (including the Tritax Big Box REIT plc), consisting of over 16 million sq. ft. of real estate assets.
Since 2000, the Tritax Group has delivered an average exit IRR across its non-tax products of approximately 16% pa, with a number of its tax products achieving performance in excess of this average. Its recent tenant list includes Amazon, Next Group plc, Intercontinental Hotels Group, Sainsbury’s, RBS, Royal Mail, Tesco, IBM, HMRC, Halfords, GDF Suez, Accor, and Asda. Further information on Tritax is available at www.tritax.co.uk
Tritax Property Income Fund (TPIF)
Structured as an open-ended Jersey Unit Trust, TPIF’s investment strategy is to concentrate on an income focused core plus approach, acquiring and managing a diversified, high quality portfolio of assets across the UK, outside Central London, in targeted commercial property sectors.
The Fund’s investment objective is to invest in commercial property assets that generate or are expected to generate secure income rental streams, with a view to delivering to investors regular and stable income distributions as well as achieving long term capital growth. Tritax has an ambition to grow the Fund to over £500 million in the medium term. Further information on TPIF is available at http://www.tritax.co.uk/tpif/